|
Home
Domestic Energy
Assessments
Home Condition Reports
Frequently
Asked Questions
Links
| |
A
Guide to the Benefits of including a
Home Condition Report
in a Home Information Pack
From 1 August 2007 the law
requires sellers of some owner occupied homes placed on the market to provide a
Home Information Pack; this requirement will extend to all such homes very
shortly thereafter. The Pack must include legal documents, searches and an
energy efficiency report known as an Energy Performance Certificate. It can also
include a Home Condition Report (HCR)
At a future date the HCR may become a requirement in the Pack. However it is
highly beneficial to all involved in the transaction if a Home Condition Report
is included voluntarily
So
what is a Home Condition Report?
The Home Condition Report acts as a ‘health check’ for a home and is similar
to a surveyor’s report – which many buyers already get, but only after their
offer is accepted. It is an objective report on the condition of the property
that buyers, sellers and lenders have a legal right to rely on. Home Inspectors,
who provide the Reports, are required to have suitable insurance and be
registered with a Government approved Certification Scheme.
By providing this Report upfront, it will not only give sellers a competitive
advantage but will ensure buyers have the confidence to commit to the property
immediately an offer is put in, with the offer already reflecting the
property’s condition – something they are unable to do if they still have to
wait for a survey to be completed.
This means that the time taken to complete a sale should be reduced, as the
legal documents will already be in the Home Information Pack. Inclusion of the
Home Condition Report will ensure that the buyer is not faced with nasty
surprises later in the buying process, which could threaten the sale.
And what does it cover?
The report tells you:
about the construction and condition of the home on the date it was
inspected;
whether more enquiries or investigations are needed.
The report’s main aim is to tell you about any defects that need urgent
attention or are serious. It also tells you about things that need further
investigation to prevent damage to the structure of the building.
The report gives ‘condition ratings’ to the major parts of the main
building. However, the report does not mention minor defects.
The report includes the mandatory energy performance certificate that tells you
about the energy and environmental performance of the home, and suggests any
improvements that you can make.
The report does not tell you:
the value of the home or cover things such as the area the home is
in or the availability of facilities;
about minor defects that would not normally have any effect on a buyer’s
decision to buy;
about any health and safety risks , unless repair or building work is needed to
avoid them;
the cost of any repair work or the types of repair which should be used.
But is it money well spent?
For serious sellers, it makes sense to reduce the risk of delays, last minute
withdrawal, or attempts to re-negotiate the price, due to factors arising out of
the condition of the property. Sellers will be one step ahead with a cost
effective advantage to selling their home if a Home Condition Report is obtained
at the same time as the mandatory energy performance certificate inspection is
done.
Furthermore, if the home is in good condition, the HCR will confirm this. If
there are problems, it must be better that they are out in the open straight
away, rather than having the worry and uncertainty of a “lottery” as to
whether a survey is done for the buyer. It also gives you the chance, in your
own time, to address these problems, whether by fixing them or getting reports
and quotations for doing so, rather than being pressured into accepting those
commissioned for the buyer.
Why
use Home Inspect Anglia?
Home Inspect Anglia is an independent company serving the East Anglia, based
upon a wealth of local experience and dedication to professional service to the
client. Its founder, Richard Payne, is a qualified Home Inspector with twenty
five years experience in the residential surveying profession. They have
established a unique, highly motivated and dedicated team to provide a rapid,
friendly and cost-effective service to clients.
A Home Condition Report will:
give sellers and their estate agent better information, to help decide the
marketing strategy and asking price
allow, during marketing, for further investigations of problems, to avoid delays
after offer acceptance
show potential buyers that the homeowner is serious about wanting to sell
eliminate suspicion by potential buyers that the homeowner is trying to hide
something
delight buyers who will not have to get a survey and who will be more inclined
towards the property
ease and speed up mortgage applications
reduce the potential for sales falling through or difficult renegotiations
speed up the process and drastically cut the potential for stress and worry
between offer acceptance and exchange of contracts
Remember –
In most arrangements, the HCR will not have to be paid for until the property
sells or is withdrawn from the market, within a 12 month period.
An inspection is required by law (increasingly from 1 August 2007) for the
Energy Performance Certificate for homes with 4 or more bedrooms and it is extremely cost effective to commission
the HCR at the same time.
The HCR is undertaken by a fully qualified, insured and competent Home Inspector
who is registered with a government approved certification scheme.
If a
defect becomes apparent later on, then the homeowner will have a survey to
demonstrate to their insurers that the defect was not present or known about at
the time of purchase. Hence insurance claims are easier.
To
ensure that a sale proceeds as smoothly and cost effectively as possible the
homeowner is strongly advised to consult a Legal Adviser (solicitor or licensed
conveyancer) at the outset to commence the procedures which are necessary to
complete a sale of the home
|
